Anger at a deal aimed at saving Cyprus from bankruptcy spilled into the streets today with thousands of students and finance workers demanding answers after the government said banks would remain shut for two more days and details of strict capital control measures emerged.

Since the Solidarity charity began handing out food packages in Paphos last year, more destitute families have been turning up each week, unable to support themselves as businesses went under, jobs were lost, and prices soared while meagre welfare payments remained the same.

Russia has put aside its anger over what it sees as an unfair levy on major deposits held in Cypriot banks, and agreed to support Europe’s bailout of the island by refinancing a major loan to the country. The usually hawkish President Vladimir Putin had no sharp rhetoric for the EU or Cyprus today, but instead confirmed that Russia would backstop the EU bailout by restructuring a €2.5bn loan first extended two years ago.